Among all possible sources of finance for startups, venture capital is an option that is generally not considered for one that is in its early stages. However, that perception is changing. Venture capital firms are investing in a broad range of companies, especially technology, and also early to mid-stage profitable and unprofitable companies.
Venture capital investment usually means an equity investment in a potentially successful company (or one which has the potential to be) that is not traded publicly in the stock market. Venture capital investments are usually made by venture capital firms and high net worth individuals in a business operating as a private limited company.
After investing, VC investors can create value by addressing the missing elements that are crucial for startup success, such as marketing or sales expertise, in order to accelerate the business and achieve scale. They aim to increase the value of the underlying asset by assisting founder teams with the VC firm’s own operational experts, sometimes combining newly acquired assets with already existing assets to create a stronger whole, or refining promising products to unlock growth potential.
Capital is provided for:
Seed stage investment: A business idea. The capital generally support product development and market research.
Early stage investment: Companies moving into operations and before commercial sales have occurred.
Formative stage investment: Starting or scaling up of operations.
Later stage investment: Further expansions and scaling up prior to the company going public.
The shares of a private company are not traded in public. Hence, value of the shares of a private company cannot be evaluated readily and is the outcome of a negotiation process between a the investors firm and the founders. To ascertain value, private equity firms use a number of valuation techniques. The selection of an appropriate valuation technique depends on the stage of investment.
In the realm of global corporate leadership, one name resonates loudly across industries and regions: Indra Nooyi, the former CEO of PepsiCo. Hailing from the diversified India, Indra changed the face of PepsiCo when the brand was witnessing dwindling popularity. After she stepped down as the CEO after 24 glaring years in PepsiCo., market analysts are terming the position “very hard to replace” in wake of Indra’s bold and thoughtful leadership style.
This year, the theme for International Women’s Day is aptly kept- #BalanceforBetter. In Bangladesh, Ready Made Garments (RMG) has been the frontrunner in empowering females, where 4 million women found their earning source. Over the years, SME sector has also witnessed surge in active women entrepreneurs, who are highly motivated and aspired to take their business to a whole new level. The growing participation of young female entrepreneurs in F-commerce realm also deserves accolades. In corporate level, however, an unbalanced trend is discerned as we move up along with the hierarchy ladder. Female employees start falling out as they move to the mid-level in career and start having their own family responsibilities, resulting in a vacuum in top leadership positions. In many research and survey conducted internationally, it has been reflected that women make difference in the boardroom and in the company culture when they are put at helm of a company. It is high time, local corporates should recognize the fact and start working on the female potentials to the betterment of the company and coming up with suitable initiatives and facilities for them. Perhaps, down the line, Bangladesh may give birth to a number of Indra Nooyi’s who will change the face of the total economic scenario with their prudent leadership skills.Download View